Daily Crypto Updates (Dec. 16, 2021): Crypto Rally
Increased Confidence in BTC
The U.S. Federal Reserve has just ramped up its efforts in its battle against the worst case of inflation that we’ve witnessed in our generation. They have done so by accelerating the stimulus withdrawal process, as well as by projecting three rate increases in 2022. As a result, both the crypto and traditional markets experienced overnight rallies on the speculation that the Fed’s hawkish stance will be effective in combating surging prices. The price of BTC was buoyed above previous resistance levels, even rising as high as $49.5k at some point before returning to range-trading below the $49k level.
In the same vein, ETH has also managed to ascend above the $4,000 level where it is currently trading at, up a substantial amount from the $3,700 level that they were previously trading around. While the initial excitement that was generated from the Fed’s announcement has already begun to fade, most major cryptocurrencies still remain in the green, posting decent 24-hour percentage gains in the process.
On the on-chain front, several data points also reveal the fact that long-term BTC holders are growing in confidence when it comes to the number one cryptocurrency by market cap. The BTC reserve risk chart is currently trending downwards, indicating that an increasing number of investors are accumulating and HODL-ing BTC with conviction.
If historical trends are anything to go by, the HODL phase may turn out to be a long and arduous one, but in the end — patience will almost always pay off.
Crypto lending firm Ledn has successfully raised $70 million in a Series B round of funding, bringing their firm’s total valuation up to $540 million. The firm has also announced that this freshly raised capital will be used to bolster the development of their first-ever BTC-backed mortgage product.
According to Adam Reeds, Ledn’s co-founder and CEO, this new product offering will provide an alternative option for “those who choose to invest outside the mainstream of legacy banks.”